Being owed a tiny sum of money...

Is there anything you can do when you are owed a small sum by someone, but they essentially ignore all your requests to pay?

For instance with a sum of £100 there's not really anything you can do to get it is there - as the cost of getting a legal letter etc sent out or even considering such a process would be costly and time consuming and not just worth it?

Lianne

Re : Being owed a tiny sum of money

OK I'm guessing the answer is no then! Or a well kept secret...

Re : Being owed a tiny sum of money

I don't think it would be worth suing them because the fees would be greater than the potential winnings I imagine; even the small claims court would be a hassle.

Start applying all the interest you are legally entitled too until it becomes a large enough debt that they will worry about or at least something where it is realistic to start taking other measures to reclaim the moneys.

Stephen

Re : Being owed a tiny sum of money

I would agree with the above advice.

In terms of in the future I would recommend that for every payment of around £100 or less always ask for payment up front. IF they are not prepared to pay such a small amount up front then it is worth forfeiting the business for the sake of all the hassle of having to chase up those who refuse to pay that small amount.

Sasha

Re : Being owed a tiny sum of money

I've learnt the hard way to do exactly what Sasha says - and if they are not prepared to pay up front for such a small sum then it would probably have been a hassle to get the money out of them anyway.

Re : Being owed a tiny sum of money

Update - my policy of always taking full payment up front for orders under £100 is working well and I don't think I've lost any business because of it. It saves all the hassle of chasing up small payments which costs more in terms of time than the actual business takes to do.

So I would recommend everyone implements this policy where possible with your product!

Tim

Re : Being owed a tiny sum of money

Hi,
I agree with the above advice everyone has given, it makes more sense to get customers to pay upfront and not give them a credit account in the first place. The legals would cost more then what you are owed and its more hassel.
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Dikisa Pamneja, MAAT Affordable Accountant http://www.eliteaccounts.co.uk 0800 822 3166 07930 389 351

Re : Being owed a tiny sum of money

Agreed, but it's surprising how many people start breaking out in sweat at the idea of having to take even minimal payment up front.

Chris

Re : Being owed a tiny sum of money

We send out a letter before action and have over 90% success rate and the letter costs under just £5 plus VAT to send. If the invoice is B2B you can add interest and a penalty for late payment provisions allowed under statute.

Just email over the invoice and we send a payment method to you with VAT electronic invoice and the letter goes 1st Class or by fax to the debtor within 24 hours.

http://www.limeone.com
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John Dalton Http://www.limeone.com T 01244 852550

Re : Being owed a tiny sum of money

What you can do is go to your local Small Claims Court. You will find the staff there helpful and the process is actually very straightforward. There is a small fee payable but this is added on to the amount owed to you.

Once you have set yourself up to proceed this way you simply write a letter to the debtor yourself telling them that: 'Unless payment is made within seven days I will be proceeding through the courts for its recovery'.

What you must ensure is that your paperwork is in order (orders or correspondence, invoices, proff of delivery etc.) is in order before you start.

In my experience, if they've got the money, this will force them to pay it.

Joe
http://www.figurewizard.com
Free Online Business Forecasting and Planning
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http://www.figurewizard.com Free Business Forecasting and Planning Online

Re : Being owed a tiny sum of money

Could try one of our services http://www.debtcollectionletters.co.uk we also offer free advice to creditors through our main debt recovery website which is also listed on that site.
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http://www.debtcollectionletters.co.uk commercial debt collection from just £19.99

Re : Being owed a tiny sum of money

Thanks all

Re : Being owed a tiny sum of money

You're welcome!

Re : Being owed a tiny sum of money

Hi
I believe many local Small Claims Courts are now on-line so the costs can be minimal. Might be worth a look.

Gary
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www.pd-consultants.co.uk Product development process experts

Re : Being owed a tiny sum of money

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